FRAUD UPDATE: MADOFF Et al -14

_FRAUD UPDATE: MADOFF Et al -14 January 09  _

US declares former UBS banker a fugitive

MIAMI, January 13 – The former head of [UBS](<http://markets.ft.com/tearsheets/performance.asp?s=ch:UBSN>) ’ wealth management business, Raoul Weil, was formally declared a fugitive on Tuesday after failing to surrender to US authorities on charges of conspiring to help wealthy Americans hide assets from US tax authorities.

Prosecutors in Miami released a copy of a judge’s brief order putting Mr Weil on the court’s fugitive list, but said they would have no further comment.

An [indictment](<http://www.ft.com/cms/s/0/bc6fbb96-b0ec-11dd-8915-0000779fd18c.html> "UBS blow as US indicts wealth management head ") unsealed in November alleged that Mr Weil and other unidentified bankers conspired to help 17,000 Americans hide $20bn of assets in Swiss bank accounts in order to avoid paying US taxes.

At the time, an attorney for Mr Weil said he was innocent and called the indictment against him “totally unjustified.”

Mr Weil was based in Switzerland. He oversaw the Swiss bank’s cross-border private banking business and was a member of UBS’ executive board until stepping down when the charges were made public. UBS has said it was cooperating with investigators.

Mr Weil's failure to appear is bound to refocus attention on prosecutors’ so far unsuccessful bid to jail alleged swindler [Bernard Madoff](<http://www.ft.com/indepth/madoff-scandal> "ft.com") while he awaits a possible indictment for fraud in what could the be largest Ponzi scheme in history.

In a Ponzi scheme, early investors are paid off with money from new clients.

In June, Samuel Israel III, a former hedge fund manager convicted of cheating investors out of $400m, faked his own death to avoid a 20-year prison sentence. His high-profile run from justice [ended](<http://www.ft.com/cms/s/0/6a312268-4849-11dd-a851-000077b07658.html> "Hedge fund fugitive surrenders") after his mother convinced him to turn himself